U.S. President Donald Trump and Chinese President Xi Jinping spoke by phone on Thursday in a high-stakes call aimed at easing mounting trade tensions between the world’s two largest economies, according to a statement from China’s embassy in Washington.
The conversation, reportedly initiated at Trump’s request, comes as both nations navigate an increasingly fragile truce in their years-long trade dispute. The White House has not yet released details of the call.
The two leaders’ dialogue follows a tentative 90-day agreement reached on May 12 to roll back some of the punitive tariffs imposed since Trump’s return to the presidency in January. While the short-term deal led to a brief rally in U.S. markets, it left several critical issues unresolved — including disputes over rare earth minerals, technology exports, and geopolitical flashpoints such as Taiwan.
On Thursday, U.S. stocks rose modestly after the call was reported but ended the day largely flat, as investors assessed the limited scope of progress.
Tensions have escalated in recent weeks after China halted exports of several key minerals essential for sectors such as automotive manufacturing, semiconductors, and defense. Analysts view the move as a strategic countermeasure that could exert economic pressure on the U.S. administration by threatening supply chains and raising costs for American industries.
Trump has responded with additional trade actions, including new restrictions on chip-design software exports and a doubling of tariffs on Chinese steel and aluminum to 50%. Beijing has rejected U.S. accusations of violating trade agreements and warned of potential retaliatory steps.
Despite the sharp rhetoric, Trump has continued to speak admiringly of Xi, describing him as a strong leader. Still, efforts to arrange leader-level talks had previously stalled, with China insisting on preliminary agreement details before any such meetings.
The timing of the leaders’ conversation is significant, as businesses prepare for the crucial end-of-year retail season. Trade uncertainty has complicated supply chain planning and prompted legal challenges to Trump’s tariffs in U.S. courts.
The last confirmed phone call between Trump and Xi occurred on January 17, according to both governments. Trump claimed to have spoken with Xi again since taking office, though no specifics have been provided and China has denied any additional contact until now.
The two leaders have met several times in the past, including during state visits in 2017 and at the G20 summit in 2019. Xi last visited the U.S. in November 2023 for talks with then-President Joe Biden, where the two countries agreed to resume military communications and collaborate on reducing fentanyl exports.
With renewed tensions and strategic maneuvering underway, Thursday’s call may mark a cautious step forward — but the path to a comprehensive trade agreement remains uncertain.
